Hate to Say We Told You So: New CMS Report Shows “Reform” Raises Costs

I hate to say we told you so. Really…we hate it. The first comprehensive report of the recently passed health care law was unveiled today. The study, done by the Center for Medicare and Medicaid Services (CMS), shows that many Republican criticisms of the health care law are likely to become reality.

We told you so. Representative Paul Ryan said

“Cost containment underpins the entire argument for reform. You’ve all been assuring us: ‘This plan will slow the growth of health care costs for our families, our businesses, and our government.’ Here again – the substance falls short of the rhetoric.”

The public agreed with Ryan. A Rasmussen poll taken directly before the health care reform vote found that 57% of voters believed that the costs of health care would go up while only 17% believe costs would go down if Democrats’ reform passed.

The CMS report showed these fears were not unfounded. The economic experts at the Health and Human Services Department found that the new reforms will do little to curb the runaway health care costs. In fact, they argue that it will bend the cost curve up, raising baseline spending by 1% over 10 years. The report states that,

“In aggregate, we estimate that for calendar years 2010 through 2019, [national health expenditures] would increase by $311 billion, or 0.9 percent, over the updates baselines projection that was released on June 29, 2009.”

CMS admits that even this figure may be more generous than the reality due to some unrealistic cuts being made to Medicare. Again, we told ya so. Senate Minority Leader Mitch McConnell repeatedly said that

“Medicare is already in trouble. The program needs to be fixed, not raided to create another new government program.”

According to the new report we were right. CMS says that cuts to Medicare could drive 15% of hospitals into the red and thus possibly lower the quality of care for Medicare beneficiaries.

“Over time, a sustained reduction in payment updates…would cause Medicare payment rates to grow more slowly than…the provides cost of furnishing services to beneficiaries. Thus, providers…could find it difficult to remain profitable and, absent legislative intervention, might end their participation in the program (possibly jeopardizing access to care for beneficiaries.”

Cutting access to Medicare would be political suicide. The government will be unwilling to accept this reality and will be forced to act to restore Medicare payment rates. But by doing so the Democrats’ claim that the reforms actually reduce the deficit would fall by the wayside.

The question everyone should be asking is why we are only hearing about this now. Before the bill was passed Democrats knew that the CMS was going to release a report analyzing the costs of the bill. At the time the CMS lamented that under the “very tight time frame” and due to the “complexity” of the reform legislation they would not be able to analyze the costs before the House voted on the legislation.

Instead, Democrats touted the score by the nonpartisan Congressional Budget Office as showing everything they needed to know before a vote was taken. Unfortunately for democracy, the CBO score was gamed. Unlike the CMS report the CBO is not a neutral calculator of costs. The CBO was forced to use unrealistic assumptions in determining the cost of the legislation, a constraint not shared by the CMS. It is little wonder then that today’s report provides a much less flattering picture; one that actually increases health care costs and decreases the quality of care.

We told you so. But we take no satisfaction in saying it. The sad reality is that this bill was sold to America based on faulty numbers. It was forced upon taxpayers without a full understanding of what it would truly cost. Democrats could have delayed the vote. With trillions of dollars in taxpayer money at stake they should have delayed the vote. Whether they didn’t do so because they wanted the debate to be over, or worse, because they expected the CMS report would show their savings claims were false, the victim is the American people. Regardless of whether Democrats’ motivations were naïve or insidious they must pay the price in November. We may be stuck with an overpriced health care reform package, but we aren’t stuck with Democratic majorities.

by Brandon Greife, Political Director of the College Republican National Commitee

Read more: www.collegerepublicans.org

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Comments

The world is a bad place---according to the Republicans

Look at almost every main post by the right wing nuts on this blog--or any right wing blog--also Tea Party nuts---America is a bad place--the sky is falling---the right wing can not find anything good to say about anything---basically America is hell on earth---and it just happened in the last 15 months---lol. 

But the fact is economically we are doing better then most of the rest of the world--our financial system is on the mend---our markets are on fire---almost all financial indicators are pointing up---CAP-X today was a blow away number---new home sales, best in years--up 27%.  Employment is a lagging indicator---it too will improve--give it time---believe!!! 

Bottom line:  if you have been siding with the republicans and shorting America---you have been losing your ass----If you keep believing the lies that FOX news has been putting out about the economy--you are going to be in the poor house----how does FOX even stay in business--lol

I don't believe in the Republicans or Democrats---I believe in America!!!

 

The Health and Human Services (HHS) also agrees

Insurance rates will go up, Costs for Health care will increase, and Obama Lies to Americans once again.   "O" said Insurance rates will go down by 3000 %, and the new HC bill will reduce the Deficit......Lying SOB as defined by the HHS Bureaucrats themselves.

Even Taxing Americans for 4 years before the HC bill  becomes fully effective will not stop the Increase in Insurance Rates and HC costs.

As for Gunstoppedup and his BS comments, he must be a DNC operative "promising" that Employment will improve......but doesn't even say WHAT YEAR, and who will be President when it does, and What economic indicator will start the "improvement".  It must be a faith based comment.

Lies and more promises from another Obama Worshiper.  

Now we have Obama bad mouthing Americans in Arizona enforcing the Illegality of Illegal Aliens....who the HELL does Obama support ?  Americans or Mexicans ?   Does Obama support the laws of the land  ?   What part of Illegal immigration does Obama think is un-American ?

BHOle just lost another 5 points in the Polls, and Obama hates Americans, and will not protect the Sovereignty of the Borders and the USA.

 

nice, 4speed

sovereignty.

Dems out on the HC limb, start hearing snapping sounds

The Democrats excuse for supporting the Health Care bill, are not coming true.   HHS and CBO are cutting off the limbs.

Wait...

... so now you trust government numbers on health care reform?  I thought those numbers were always wrong/lies?

I'm so confused?!?!?

 

Edit to add:  not surprisingly, this report is being taken out of context.  While we already knew the cost of health care would rise over time, because of the new law it will rise less, and more slowly, than it otherwise would have.  Additionally, once we're a decade into the bill, unless Republicans block implementation, the costs will start declining significantly at a constant-dollar comparison.

For more info, there are any number of places you can turn.  There's an excellent synopsis of it here, though:

http://voices.washingtonpost.com/ezra-klein/2010/04/the_affordable_care_acts_spend.html

(Yes, I know already, it's from the "lamestream" media)  Rolls eyes...

Wrong again Bean Dean....still predicting the future, are we ?

From the American Spectator Prowler: "The economic report released last week by Health and Human Services, which indicated that President Barack Obama's health care 'reform' law would actually increase the cost of health care and impose higher costs on consumers, had been submitted to the office of HHS Secretary Kathleen Sebelius more than a week before the Congressional votes on the bill, according to career HHS sources, who added that Sebelius's staff refused to review the document before the vote was taken. 'The reason we were given was that they did not want to influence the vote,' says an HHS source. 'Which is actually the point of having a review like this, you would think.'"

So everybody knew. Everybody knew that Obamacare would ratchet up the cost. That news was suppressed. Sebelius didn't want to read it on purpose, saying she "didn't want to affect the vote"
Roflmao.
The undisclosed truth, hidden from Dean so he would step in it....LOL.
You can Trust a Democrat....to hide the Truth.

Not according to the Liar in Chief, HC costs were going Down

The most Famous "Selling" quote from Obama, from his Healthcare Campaign using the Controlled Audiences and Selected attendees, was the the 3000% decrease and the "you might get a RAISE !" quotes from "O" himself on the HC selling campaign Trip. 

From  your statement BELOW " While we already knew the cost of health care would rise over time, because of the new law it will rise less, and more slowly, than it otherwise would have"   Did NOT come from the mouths of the Democrats, Pelosi, Reid, Obama.   They talked a different Scenario, altogether.  

Its called Lying, and with the HHS hiding the Numbers from Congress, because Reality might cause a vote or two to go south on the HC passage, its called Felony Theft from the Taxpayers and hiding Reality and Truth.   

So who is BAD ?  Those BAD Insurance companies raising the Insurance Rates without the Obamacare bill, or those same BAD Insurance companies raising the Insurance Rates because OF Obamacare ?    Sounds like we got taken.

REPEAL and REPLACE coming in November.

You obviously don't understand the context of the report...

... do you.  Because if you did you'd see that it shows that while costs will increase (duh) they'll increase at a slower overall rate, lowering the overall cost compared to what would happen without the bill.  The report is completely consistent with what the Democratic Congress and the President's Administration were saying all along. 

But if you want to take select bits of the report and spin them out of context, be my guest.  Oh, wait, you already have.  And I proceeded to disprove the fallacious act.  Sometimes I think some of you don't realize that "the big, scary Left" can also look up stuff on the internets. 

I understand the Report allright Deanie weeny

The HHS analysis also found that the law falls short of the presidents twin goal of controlling runaway costs. It also warned that Medicare cuts may be unrealistic and unsustainable, driving about 15% of hospitals into the red and possibly jeopardizing access to care for seniors.
The report acknowledged that some of the cost-control measures in the bill Medicare cuts, a tax on high-cost insurance and a commission to seek ongoing Medicare savings could help reduce the rate of cost increases beyond 2020. But it held out little hope for progress in the first decade.
and
and
The report was only released a month after the HC vote.
Tsk....tsk......Manipulation of information by "the most transparent Administration" LOL
BUT THATS NOT ALL....

During 2010-2019, however, these effects would be outweighed by the increased costs associated with the expansions of health insurance coverage, wrote Richard S. Foster, Medicares chief actuary. Also, the longer-term viability of the Medicare reductions is doubtful. Fosters office is responsible for long-range costs estimates.

You're a classy guy, 4speed

You still don't understand the report and you've resorted to calling me something that I've not heard since I was in junior high school.  Well played!

My family's health care costs have gone up every year.

My family's health care costs have gone up every year since I can remember - so what is your point?